For locals it works great they can be on site daily if they need to etc.

But maybe one of the local HML can pull it off.

I have great local loan officers contacts and property manager contacts for down the road as well :)

Do you know if your local appraiser will give 500k to the 3 ADUs? 

Secondly, the property itself has had a lot of non paying tenants in the past so for me personally, not sure if that local neighborhood is really a winner for me.  1031 exchange requires you to replace the property within a certain period of time and i just cannot find anything in that short window. 

There are not many multi-family options available in my local area, and the ones that are available are overpriced or the current rent rolls are extremely below market average($200-$400 per unit).

I'm from a HCOL area(SF), so it is almost impossible to invest locally

Our local magistrates handle landlord/tenant complaints the same whether they are Section 8 or non-Section 8 tenants. 

A very good source of local analysis is rereport.com

However, if you are looking for someone local there are few in CA and even LA who may be taking on clients.